Socialism is now gaining popularity and enjoys a clear resurgence. In the US there are many young Americans that embrace it but the truth is that socialism was already big in the country and ended up failing. According to Turning Point USA, socialism failed during the twentieth century, fails during the 21st century and will surely always fail. This is believed to be due to the fact that the system is flawed and uses faulty principles not connected with normal human behavior.
Why Did Socialism Fail In The Past?
Socialism stood up as a highly attractive principle. It promised security, equality and prosperity. Unfortunately, it just offered misery, tyranny and poverty. There was no true equality that was ever achieved and it is most likely impossible to have completely equal people in the current society.
Socialism always showed early success signs. However, as time passed, the initial seductive appeal went away. The result was always misery and tyranny. Collectivism cannot be sustained and socialism did not work in the past as human behavior principles did not align with what governments or ruling forces tried to do.
The critical defect that was identified was the fact that socialism ignores incentives. In the capitalist economy there is high importance placed on incentives. In fact, capitalism is based on the belief that incentives are very important. Socialism either ignores or minimally utilizes incentives. Economic activity is not driven since the economy does not have profits or market prices.
A Neglect Of Incentive-Enhancing Components
Capitalism is based on a strong incentive structure with the foundation in:
- Prices being determined by active market forces.
- An accounting system built around profits and losses.
- Private property rights.
Socialism fails because all these components are practically neglected.
Not Nurturing Individual Potential
Socialism failed to promote, foster and even nurture natural potential that comes from people. Centrally planned economies practically led to humans not wanting to reach a full development. The human spirit was practically destroyed, oftentimes because of an inability to have enough money to buy food.
A Loss Of Freedom
Socialism is highly tempting and will most likely be so in the future. The premise is that some of one’s personal freedom is sacrificed in order to gain increased security. Unfortunately, this is not what happens, as proven by the entire past century. Both security and freedom ended up being lost.
Socialism is and will be tempting. It failed and then inspired a complete renaissance of liberty and freedom. Right now we see a clear need that people have to be free. This is why so many societies now move towards freedom.
Although capitalism also has some disadvantages and clear problems, it does play a huge role in a global prosperity and liberty revival. Human spirit is nurtured, promoting creativity and a desire to keep growing. Incentives promote hard work, efficiency and thrift.
Socialism might have a resurgence pretty soon in many parts of the world, often being misguidedly connected with conservative values. However, this can only be a trend that will go away, as proven by history.